<b>Paper Industry Closing on 50 Percent Recovery Goal</B>

The American Forest and Paper Association announced that it is closing on a recovery rate of 50 percent. After showing little change during the three preceding years, the U.S. paper recovery rate advanced significantly last year to 48 percent, from around 45 percent in 1999.

According to the AFPA, the gain between 1999 and last year is among the largest one-year increases ever recorded for the recovery rate – measured by the total amount of paper recovered for domestic use and export as a percentage of purchases of paper and paperboard.

Exports of recovered paper increased more than 20 percent last year, with shipments to Canada, Mexico and China leading the way. Consumption of recovered paper by U.S. mills increased 2.3 percent last year, which was impressive given that production of paper and paperboard declined 2.8 percent.

Last year’s overall recovery rate increase reflected strong progress at the grade-specific level. For instance, the recovery rate for old newspapers increased from 68 percent in 1999 to 71 percent last year, while the recovery rate for old corrugated containers jumped dramatically from 69 percent to 75 percent.

The paper recovery rate, especially for specific grades, has shown some volatility over the years. However, since 1988 when the recovery rate was 30 percent and the industry began measuring progress towards its goal, there has been incremental progress each year. There has been a 66 percent increase in the recovery rate since then.